200 MDD auctioned by the Bank of Mexico – Reaction

200 MDD auctioned by the Bank of Mexico – Reaction

Gustavo Cervantes – August 4, 2015

NEWS (Economy) - The devaluation of the Mexican peso against the dollar and the reaction of announced that the Bank of Mexico to auction $ 200 million to address currency volatility and market speculation.


The support to provide the foreign exchange market liquidity granted by the Bank of Mexico to raise the figure of 52 million to 200, was well accepted by government and private groups.

CANACINTRA, CONCAMIN and the National Action Party (Partido Accion Nacional, PAN) gave success to the decision of the Bank of Mexico, every one are agree that it will be a good component to reduce deviations in the market, provide certainty for traders and it will reduce perception to exceeding 17 pesos per dollar, same perception and uncertainty that increase risk and stops the investments. This measure helps to companies and industries that perform imports and exports because it conditions the depreciation of the currency. The three organisations expressed their agreement that the measure shows that authorities understood the importance of addressing speculation that exist in the currency market.

The federal government faces its third test, first, security, where the result has not been as expected. Second, job creation and economic growth, which has not been entirely favorable, will now have to respond to the economic part, providing security to the market and businesses to not stop their economies.

This measure has been taking place since December last year, with the auction of 600 million dollars in three sessions, first on December 11, the second on March 6 and the last that was announced today.